It’s getting close to the deadline now for taxes this year, and I’ve been hearing the usual talk among coworkers about how much they’re getting back in their tax refunds.

I hear things like “I love getting a big refund”, or “Getting back more is better because it helps me save”, or even “Woo-hoo! Free money!”.

Now, I know what you’re thinking: “Not another article about how getting a big tax refund is bad because you’re making an interest free loan to the government”. (If you haven’t thought of it this way before, lets review: When you get a refund, it means that you’ve payed more than you owe, and that the government has been borrowing your money the entire time for free. Taxes are a necessary part of living in our society, but nobody wants to pay more than they have to. The sooner you get your money, the sooner you can start earning a return on it. This means that (on paper) the most cost effective solution is to figure out the absolute minimum that needs to be withheld from your paycheck without incurring a penalty.)

Personally, I’d much rather get it sooner than later.

However, if you are going to spend the money anyways, getting a tax refund can be a wise decision, since it forces you to save. Some folks love getting a lump sum, while others argue for finding a balance.

The most important thing to consider next is what you decide to do with the refund when you finally get it. And here’s where the danger comes: Most people end up treating their refund as “found money” and something to get excited about. The truth is that the money is yours, and already long overdue.

“But it forces me to save, which I otherwise would not have been able to do!”

The problem with using this argument is that it is the financial equivalent of going on a crash diet. Sure, you can stop eating junk food for a few months, but as soon as the diet is over, you’ll go right back to eating junk food. A better solution would be to make a lifelong decision to exercise and eat healthier foods, and your weight will take care of itself.

In financial terms, this means that you have to make lasting changes to the way that you manage your money. It’s not a quick fix, it’s not easy, and at times you will be tempted to fall back on old habits, but if you make an ongoing effort to live below your means, saving money will happen automatically. This is one of the simplest ways to start improving your financial health over the long run.

Now I’m not advocating that you go through arduous, painstaking hours examining alternative scenarios, and figuring out how to save pennies on your taxes. Rather, the goal is to adjust your mindset and examine your habits in order to gain a better understanding of how to manage your money more effectively.